Bybit launched choices buying and selling for Tether Gold (XAUT) on its platform on June 12, changing into the primary crypto alternate to supply choices on a tokenized real-world asset, in line with the alternate’s announcement. The brand new product permits merchants to hedge or wager on gold value volatility by means of XAUT, amid the continual enlargement of tokenized gold and real-world property on the blockchain.
Bybit Turns Tokenized Gold Into an Choices Market
With XAUT choices, Bybit is bringing tokenized gold past spot buying and selling and into the crypto derivatives market. XAUT is usually used as a token representing bodily gold, however choices provide a extra versatile option to commerce, from danger hedging to betting on gold value volatility inside a crypto-native atmosphere.
Based on Bybit’s June 12 announcement, that is the primary time a crypto alternate has provided choices on a tokenized real-world asset. The alternate additionally partnered with Orbit Markets to assist liquidity in XAUT choices and deployed a Request for Quote (RFQ) mechanism concentrating on skilled purchasers.
This transfer comes as tokenized gold is gaining traction from either side: the demand for gold as a hedging asset and the development of bringing real-world property onto the blockchain. For Bybit, the brand new product helps rework XAUT from a token monitoring gold costs right into a instrument that can be utilized in broader spinoff methods.
How the XAUT Choices Work
With XAUT choices, the underlying asset is Tether Gold, whereas the contracts are settled in USDT, in line with CoinDesk. Every XAUT represents one wonderful troy ounce of bodily gold, so this product brings gold value volatility into the crypto market’s spinoff construction.
For merchants, XAUT choices can be utilized to hedge or commerce primarily based on the route of gold costs with out dealing with bodily gold supply or opening a standard commodities account. XAUT holders can use put choices to restrict danger when costs drop, whereas merchants anticipating costs to rise can use name choices as an alternative of shopping for the token straight.
Bybit additionally deployed a Request for Quote (RFQ) for XAUT choices, concentrating on institutional {and professional} purchasers. Based on the alternate, RFQ will assist OTC buying and selling with non-standard strikes, custom-made maturities, and multi-leg methods, as an alternative of relying solely on out there contracts on the order guide. This mechanism helps Bybit serve massive orders or extra advanced spinoff buildings outdoors the common listed market.
Why Tokenized Gold Is Getting Extra Consideration
Tether Gold is at present the most important gold token by market capitalization. Based on CoinGecko knowledge, XAUT is buying and selling round $4,319, with a market cap of roughly $2.65 billion, a 24-hour buying and selling quantity of about $490 million, and a circulating provide of round 612,823 XAUT.
XAUT market cap chart (W). Supply: TradingView
PAX Gold (PAXG), XAUT’s principal competitor within the gold token class, has a market cap of round $1.98 billion and a 24-hour buying and selling quantity of about $88 million on the similar time. These figures are considerably decrease than XAUT’s market cap of $2.65 billion and quantity of round $490 million.
The eye towards XAUT additionally displays broader developments within the gold market. International central banks purchased greater than 1,000 tons of gold yearly in the course of the 2022-2024 interval, earlier than dropping to 863.3 tons in 2025, however nonetheless remaining larger than the common of 400-500 tons within the 2012-2021 interval.
The closest-month gold futures value on COMEX settled at $4,330.90 per ounce on June 16, which is eighteen.57% decrease than the height of $5,318.40 on January 29, however nonetheless 27.88% larger than the identical interval final yr. This reveals why tokenized gold has gained extra traction amongst crypto merchants who need publicity to gold whereas remaining inside the blockchain infrastructure.
The Institutional Angle
Bybit isn’t just concentrating on retail merchants with XAUT choices. The alternate’s partnership with Orbit Markets and the deployment of RFQ present that this product is designed to serve each institutional {and professional} purchasers, a bunch that usually requires bigger commerce sizes and extra versatile buildings.
Orbit Markets performs the position of offering liquidity for XAUT choices, whereas RFQ helps OTC transactions or custom-made buildings as an alternative of relying solely on the order guide. These are acquainted parts within the institutional derivatives market, the place desks typically require tailor-made quotes for large-volume trades or multi-step methods.
For Bybit, this implementation brings XAUT nearer to the logic of the standard spinoff commodities market, however on crypto infrastructure. The underlying asset is tokenized gold, settlement happens in stablecoins, and the demand to be used can come from each short-term buying and selling {and professional} danger administration.
Dangers and What Comes Subsequent
XAUT choices open up further buying and selling instruments for tokenized gold but additionally complicate dangers. Along with gold value volatility, customers additionally face dangers of the choices market, from dropping premium for choice patrons to skinny liquidity at sure maturities or strikes.
Based on Tether Gold’s documentation, every XAUT represents one wonderful troy ounce of London Good Supply bodily gold, held in a vault in Switzerland. Nonetheless, redemption and direct transactions with the issuer are nonetheless tied to KYC circumstances, major market processes, and phrases of service, whereas nearly all of customers on the alternate will commerce XAUT on the secondary market.
Following the preliminary launch section, the query is whether or not XAUT choices can preserve deep sufficient liquidity. If quantity, spreads, and assist from market makers stabilize, this product can be an early check for spinoff demand round tokenized gold.
